Self-chartering

[Beavah 205]

Any income or assets of the "unit" are likely considered as personal income for which a person or persons now owe income tax. (plus back taxes and penalties over the past nine years)...Not to mention the personal liability issues you have exposed yourselves to....Not formiing a corporation was a VERY bad idea.

 

Yah, it's never bad advice to suggest consultin' with a local attorney. They're good people. And I'd certainly recommend havin' a real, long-term, incorporated NFP CO for a unit for a variety of reasons, as I've mentioned. Makes for a more stable, better program usually.

 

But it's also not worth gettin' too hyped up about things either, eh? Most states recognize Unincorporated NFP Associations, and adopt some version of the uniform act. That act does establish such associations as separate legal entities, and does protect individuals from vicarious liability for the acts and omissions of the association.

 

Da assets of the unit would never be considered "income", of course, but interest on a bank account would. Most small groups avoid filin' just by not usin' interest-bearing accounts. I suspect for jblake's crew the tax liability exposure is zero; I'm guessin' there's not a whole lot of excess revenue over expenses and they might even be covered under da gross receipts rule for 501©(3). In any event, I certainly wouldn't anticipate anybody spendin' any time on enforcement action.

 

Goin' with incorporation and formal 501©(3) exemption status is a bit of a headache, eh? A bit too much effort for a small crew.

 

Beavah

 

[Eamonn 61]

" Gifts given to the CO group cannot be taken off their taxes, but gifts to the Crew can"

I'm not going to stick my neck out and say this is wrong!!

But it doesn't sound right!!

"Yah, it's never bad advice to suggest consulting' with a local attorney. They're good people."

Good they maybe! But most local attorneys have an accountant do their taxes! You might be better talking with some one who really knows the tax laws and how things are done in your state.

Ea.

[Beavah 205]

 

Yah, well, perhaps find a good tax attorney! Yeh can usually get 'em to give you a steer on a small issue like this in exchange for a decent single-malt scotch.

 

Honestly, though, the amounts that are probably involved here are likely to approach immaterial. But I reckon Eamonn's right about the donations aspect, jblake. Da crew is a program of the CO, not of the local BSA council, eh? Just because the BSA council is a 501©(3) entity doesn't mean the crew can receive tax-deductible donations. In fact, the IRS guidance that I'm aware of is exactly the opposite.

 

Now, I reckon the council could accept a donation designated to the unit custodial account .

 

B

 

[RememberSchiff 3687]

Thanks for the feedback, especially those notes from raisinemright and local1400.